"McMahon's RV has agreed to settle its dispute with Taylor Lautner. McMahon's RV will pay $40,000 to Lautner, which Lautner will donate to The Lollipop Theater Network, a children's charity with which he has a long-standing relationship," Lautner's attorney Robert Barta tells UsMagazine.com exclusively.

Adds Barta: "The Lollipop Theater Network is a non-profit organization dedicated to bringing movies currently in theaters to children confined to hospitals due to chronic or life-threatening illnesses. The Lollipop Theater Network works with hospitals nationwide, including the greater Los Angeles and Orange County areas.?"

Though TMZ claimed Lautner suffered from "emotional distress" over the incident, a source tells Us that simply wasn't true.

"This was never a suit about money. It was to hold someone accountable," the insider says. "Taylor never ordered a customized RV -- it was a used RV which needed simple safety-related repairs. There was never any diva behavior. 'Emotional distress' is an automatic checked box on a fraudulent claim."

Reps for Lautner could not be reached for comment.

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